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I love to be right as much as the next guy… but sometimes it's no fun.
Since the end of August – weeks now – I've been pounding the volatility drum as October got closer and closer.
That was the topic on the table this week, when I sat in with Suzanne Sena for a Fast Profits video trade.
We focused our discussion on the seasonal volatility that's as closely associated with this time of year as yellow leaves and jack-o'-lanterns. (If you haven't seen this Fast Profits, you can click here to watch it at any time… and e-mail to thank me when your stake doubles.)
Anyway, the CBOE Volatility Index (VIX) was sitting just below 16 while Suzanne was interviewing me. During that chat, I pointed out that a break above 16 would swing the market into selling mode and subsequently shoot the VIX toward readings around 20, where we would likely see a break in the selling.
And that's more or less exactly what we saw as markets try, with mixed results, to pare their losses as I write this.
We're moving into a period where keeping an eye on the rearview mirror will give us vital intel for going forward…
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.